What's Happening?
At the 2025 WWD LA Beauty Forum, Jacqueline Flam Stokes, managing director of beauty and health at NielsenIQ, highlighted significant changes in beauty shopper behaviors. Online sales have surpassed 50% of the beauty business, growing 18.7% year-over-year through August, while in-store sales remained flat. Amazon continues to see double-digit growth, with beauty sales increasing by 22% over the last 12 months. The line between prestige and mass retail is blurring, with 99% of prestige beauty shoppers also purchasing from mass retailers. Social commerce platforms like TikTok Shop are driving impulse purchases, with 68% of purchases being impulse-driven. Traditional retailers like Ulta Beauty, Sephora, Target, and Walmart are leveraging rewards programs, exclusive brands, and low prices to maintain competitiveness.
Why It's Important?
The shift towards online beauty sales and the blurring of prestige and mass retail lines indicate a significant transformation in consumer shopping habits. This evolution impacts how beauty brands and retailers strategize their marketing and sales approaches. The growth of social commerce platforms suggests a need for brands to engage consumers through digital channels effectively. The economic pressures influencing consumer behavior highlight the importance of adapting to changing market conditions to remain competitive. Brands that can differentiate, personalize, and diversify their strategies are likely to succeed in this dynamic environment.
What's Next?
Beauty brands and retailers are expected to continue adapting to these shifts by enhancing their digital presence and leveraging data to anticipate shopper changes. The focus will be on differentiating offerings, personalizing customer experiences, and diversifying strategies to capture the evolving consumer base. As economic pressures persist, brands may need to emphasize value propositions and affordability to attract price-sensitive consumers. The role of social commerce platforms is likely to grow, necessitating innovative approaches to engage consumers and drive sales.
